Bank of Wuxi (600908): Consumer loans help improve retail restructuring data

Bank of Wuxi (600908): Consumer loans help improve retail restructuring data

On August 30th, Wuxi Bank released its 2019 semi-annual report.

Among them, the operating income increases by 4 each year.

69%, net profit attributable to mothers increases by 11.
.

33%.

Brief comment one, net profit growth rate maintained double-digit growth, ROE rose to a nearly two-year high in the first half of 2019 operating income16.

56 ppm, a ten-year increase4.

69%; net profit attributable to mother 6.

44 ppm, an increase of 11 years.

33%.

From a single quarter point of view, 2Q revenues increase by 4 per year.

29%, 10% faster than last quarter.

19 singles; 2Q net profit increased by 9.

21%, an increase of 0 over the previous quarter.

46 units.

In terms of revenue structure, net income decreases by -2 every year.

86%, net non-interest income increases by 98 every year.

43%.

Improved annualized ROE is 11.

78%, a year-on-year increase of 0.

82 units.

EPS is 0.

35 yuan / share, an increase of 0 over the same period last year.

04 yuan.

The BVPS is 5.

61 yuan / share, an increase of 0 over the same period last year.

40 yuan.

Second, the net interest margin is 15bp lower than the beginning of the initial period, which reduces the net interest income of net profit in the first half of 201914.

22 ppm, a reduction of 2 per year.

86%; 85% of total revenue.

88%, down 6 from the same period last year.

67 units.

Net interest margin in the first half of the year was 2.

01%, an increase of 15bp from the early and early stages, and an increase of 18bp from the same period last year.

Mainly due to the decline in market interest rates in the first half of the year, Wuxi Bank’s market-oriented interest rate assets accounted for much higher than the market-based interest rate liabilities, so the decline in yields while the cost rate did not fall, resulting in a decline in net interest margin.

Among them, the average yield of interest-earning assets decreased by 14bp, the average yield of bond investments decreased by 55bp, and the loan yield increased by 4bp.

The comprehensive cost ratio of the 上海夜网论坛 interest payment coefficient increased by 5bp compared with the same period of the previous year, mainly because the average cost ratio of customer deposits increased by 8bp, and the cost of issued debt securities fell by 108bp, but it was relatively low, which was not enough to hedge the impact of changes in savings.

Third, non-interest income increased significantly in ten years, and the increase in investment income was the main source of non-interest income in the first half of 20192.
34 ‰, an increase of 98 per year.
43%; net income from litigation fees and commissions is 0.

58 ppm, an increase of 13 per year.

05%; accounting for 3 of total revenue.

49%, an increase of 0 compared with the same period last year.

26 units.

Investment income in the first half of the year1.

9.3 billion, an increase of 484 返回码: 404 网站打不开?重查 per year.

52%; mainly due to changes in specifications.

Fourth, the underlying recessive badness has improved overall, and the provision coverage ratio has increased significantly.

23%, non-performing loan balance 9.

1.5 billion, a decrease of 0 from the beginning of the year.

2.2 billion, bad income1.

11%, 13bp from the early and early stage, only higher than Changshu Bank in rural commercial banks.

Concerned loan balance 4.

2.7 billion, accounting for 0.

52%, 35 blood pressure drops compared with the beginning of the year, accounting for 29 blood pressure drops early.

Overdue loans over 90 days amounted to 6.

RMB 870,000, down by 11.

12%; the ratio of loans overdue for more than 90 days to non-performing loans was 75.

07%, down 7 from the beginning of the year.

41 averages.

In the case of stricter NPL identification standards, the balance and NPL ratio of Wuxi Bank’s non-performing loans both fell, and asset quality improved overall.

Provision coverage ratio in the first half of the year was 286.

11%, an increase of 51 from the beginning of the year.

35 averages, ranking second in the industry, with a loan-to-loan ratio of 3 in the first half.

18%, an increase of 0 from the beginning of the year.

26 units.

The provision coverage ratio has increased significantly, and the ability to withstand future risks has improved significantly.

Fifth, retail loans increased significantly, and the asset side was tilted towards consumer loans in real terms. The balance of personal loans in mid-2019 was 120.

4.8 billion, an increase of 14 over the beginning of the year.

57%.

14% of total loans.

62%, an increase of 0 earlier.

66 units.

In terms of structure, the ratio of housing mortgage loans, consumer loans, personal business loans, and credit cards to retail loans was 65.

9%, 23.

35%, 7.

49% and 3.

26%, which accounted for a change of -3 in the initial period of comparison.
27%, 11.
36%, -7.

10% and -1.

00%.

On the debt side, the balance of personal deposits in 2019 was 498.

53 trillion, an increase of 10 in ten years.

08%, the cost ratio is 2.

49% rose to 2.

66%.

At the end of the first half of 2019, the core tier one, tier one and capital adequacy were 9 respectively.

72%, 9.

72% and 15.

74%, a change of -72bp, -72bp, and -107bp respectively compared to the beginning of the year, which was mainly due to the lack of external capital replenishment in the first half of the year when the asset size expanded significantly; the risk reduced assets of 1127.

1.0 billion, an increase of 8 from the beginning of the year.

66%, slightly lower than the growth rate of loans.

VII. Investment recommendations From the performance of the first half of 2019, Wuxi Bank’s credit scale continued to expand rapidly, and the debt surplus growth rate reached a high of three in the first half of the year.

At the same time, with the rapid expansion of the scale, both the explicit and hidden negatives are generally better, and the ratio of non-performing loans plus interest-type loans is as low as 1.

63%, which is only higher than Ningbo Bank among all the listed banks, and its risk management and control ability is very outstanding. In the economic downturn cycle, good asset quality is an excellent ballast stone for stable performance.

In addition, the provision coverage ratio in the first half of the year increased significantly by 51.

35 levels, the ability to withstand pre-risks has been significantly improved, and the accrual pressure will be lighter in the future.

The business style of Wuxi Bank has always been stable. It focuses on corporate business, with low-performing housing loans as its core in retail business, and good overall asset quality control.

The main problem is that the net interest margin is compared to its peers. We expect that bank loans in Wuxi in the second half of the year will continue to tilt towards retail loans, especially consumer loans with higher yields in retail loans, which will help improve overall net interest margin and profitability.The level of retail loans will also help reduce the consumption of capital and ease the pressure on capital adequacy ratio. We predict that the operating income will increase in 19/20.

14% / 11.

77%, net profit increased by 10.
.

32% / 13.

01%, EPS is 0.

65/0.

73, BVPS is 6.

05/6.

25, PE is 8.

04/7.

12, PB is 0.

86/0.

83. Maintain BUY rating and 6-month target price of 7 yuan.